Could you please answer al the subquestions and explain them in detailed steps thank you. Given a country which manufactures steel, wheat, and oil. steel
Could you please answer al the subquestions and explain them in detailed steps thank you. Given a country which manufactures steel, wheat, and oil. steel sector produces $100,000 in revenue, spends $4,000 on oil, $10,000 on wheat, pays workers $80,000. The wheat sector produces $150,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers $90,000. The oil industry produces $200,000 in revenue, spends $40,000 on wheat, $30,000 on steel, and pays workers $100,000. There is no government, no exports nor imports, no industries accumulate or decumulate inventories. Output not sold to other sectors is sold as final goods.
- Organize all these given information in a table including revenue, sales, change inventory, expense, wage, other inputs, tax, profit, consumer wage income, profit distributed, government tax revenue and police wage.
- The government comes in and taxes oil producers $10,000, and distributes this revenue to workers. Recalculate GDP using the income approach.
- If government taxes oil producers $10,000, and uses the revenue to purchase steel. (Given total steel production unchanged.) Recalculate GDP.
- Now another scenario is wheat producer uses $10,000 of imported fertilizer. Output is unchanged. There are no exports. Again, calculate GDP using BOTH production and income methods. SHOW your calculations.
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